{"ok":true,"canonical_url":"https://dealroom.so/glossary/ucc-lien","api_url":"https://dealroom.so/api/public/glossary/ucc-lien","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"ucc-lien","term":"UCC lien","group":"Doing the deal","definition":"The lender's public claim on the business's assets as collateral. Standard on every 7(a).","what_it_means":"When you close an SBA 7(a) loan, the lender files a UCC-1 financing statement with the state, creating a public record of their security interest in the business's assets. This means if you default, the lender has the right to seize the collateral — equipment, inventory, accounts receivable, and any other business property. The UCC lien also signals to future creditors that the assets are encumbered. It releases automatically when the loan is paid off.","url":"https://dealroom.so/glossary/ucc-lien","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"},{"slug":"life-insurance-assignment","term":"Life insurance assignment","url":"https://dealroom.so/glossary/life-insurance-assignment"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What are the specific requirements for a lender to obtain a valid first lien position on UCC collateral when prior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-obtain-a-valid-first-lien-position-on-u"},{"question":"Is a UCC-1 filing sufficient to perfect a lien on business assets?","url":"https://dealroom.so/for-lenders/questions/is-a-ucc-1-filing-sufficient-to-perfect-a-lien-on-business-assets"},{"question":"If a lender obtains a blanket lien, what are the key UCC filing requirements for interstate operations?","url":"https://dealroom.so/for-lenders/questions/if-a-lender-obtains-a-blanket-lien-what-are-the-key-ucc-filing-requirements-for-interstate"},{"question":"What if the business assets are located in multiple states, requiring multiple UCC filings?","url":"https://dealroom.so/for-lenders/questions/what-if-the-business-assets-are-located-in-multiple-states-requiring-multiple-ucc-filings"},{"question":"When must a lender take a lien on specific equipment for collateral, beyond a blanket lien?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-take-a-lien-on-specific-equipment-for-collateral-beyond-a-blanket-lien"},{"question":"What are the specific lien priority requirements for lenders on both business and personal collateral securing a 7(a) loan, particularly when junior liens exist?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-lien-priority-requirements-for-lenders-on-both-business-and-personal"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — UCC lien","url":"https://dealroom.so/glossary/ucc-lien","source_type":"DealRoom Data"}}